Evaluating the Strategic Alignment of Human Resource Management Practices with Business strategy in Addis Ababa Private Hospitals

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Addis Ababa University


The purpose of this paper is to examine the strategic integration of HRM practices with business strategy in Addis Ababa private general hospitals. Based on the matching model this study focuses on the four HRM practices, recruitment and selection, training and development, performance and reward management. The study was explanatory research and explained the casual relationship of independent and dependent variables. The study was census and used self-administered questionnaire to gather the data; and overall 99 questionnaires from 18 private hospitals returned and analysed for a response rate of 85.3%. The respondents were all managers of the hospitals. Analysis of questionnaire response shows except recruitment and selection (mean=3.70) which is highly effective practice the other three HR practices (training and development mean=3.27, performance mean=3.31and reward mean=2.96) are in medium effective level. But strategic integration of HRM practices has been adopted by the private general hospitals and the study finding showed that the relationship between HRM practices and business strategy(differentiation, Cost) is positive and statistically significant with a p value of 0.000 for all the four HRM practices; In addition, top management support found important determinant of HRM functions and business strategy integration. And the result showed that Business strategy of the private hospitals affects the HRM practices. This paper provides some insights into approaches to strategic integration of HRM practices in Addis Ababa private general hospitals. Finally it is recommended that the private hospitals HRM practices should have strategic approach, in order to strengthen the HRM practices. Creating awareness about the HRM practices through meetings is important for the implementation and the success of HRM practices. And top manager’s support and cascading down the business strategy and the HR strategy to line managers ensures the acceleration of HR practices implementation. Having consistent HRM practices and good documentation system helps to improve the best HR practices and integration



Human resource management Practices, Business strategy, Hospital Managers